Office of the Prime Minister's official statement to counter declarations made in Parliament by Labour MP, regarding the Kercem Oil Well

Office of the Prime Minister's official statement to counter declarations made in Parliament by Labour MP, regarding the Kercem Oil Well

Statements made in Parliament by the Opposition during the budget debate on 18 December 1998 in connection with the Kercem well, give very incorrect impressions of facts and the Office of the Prime Minister finds it necessary to make the following clarifications for the benefit of the public.

Contrary to what was stated by Labour MP the Hon. Joe Mizzi in the course of the budget debate, no oil was found in the Kercem well between 4,900m and 5,000m and between 6,000m and 6,500m. The first shows of gas were encountered at 5,180m on 24 September 1998 and so far no shows of oil have yet been encountered. Nevertheless, the analysis of gas-shows at 5,800 to 6,000m would suggest that the gas is associated with oil and if this interval proves productive it could also produce oil.

As the Prime Minister stated in Parliament, tests will be carried out at a depth between 5,800m and 6,000m and at another interval at about 7,000m the extent of which has yet to be determined. Should other prospective deeper intervals be encountered by the time drilling is completed, these will also be tested.

It must also be emphasised that the open pit that will be constructed near the site is simply an environment protection measure in line with good oil industry practice. If oil and gas were to flow from the well during testing, the oil will first be separated by means of special equipment and it will be stored in special containers which are yet to arrive from abroad. Any associated water will also be separated and directed to the mud-pit within the site. Once the gas is separated from any oil and water it will then be burnt over the pit. The pit is therefore simply meant to protect the environment by collecting any unburnt liquids that may have escaped the separator and that may fall out from the flare while the gas burns.